March Sales Lower Than Expected. Dealers Increase Incentives.
Optimistic predictions about March auto sales in the U.S. haven’t exactly come true. A rebound can be clearly observed, but not as big as the auto industry was hoping for.
An estimate by TrueCar Inc. shows sales in March will amount to a little under 1.5 million units, up 1.8 percent compared to the same time last year or 24 percent compared to last month. Based on March’s sales estimate, the Seasonally Adjusted Annual Rate is 15.7 million for the whole year, comprising a 3% growth from 2013.
While this might not be the best news for auto dealers, it is for consumers, because dealerships are now offering generous incentives in an effort to attract more customers. GM, Chrysler and Ford are currently the top three auto brands with the highest incentives.
While bad weather took most of the blame for slow sales in January and February, it cannot be responsible for the low figures in March. Still, let’s not forget that: “When customers put off a purchase – say, because of the weather – they don’t necessarily go out the next sunny weekend and buy a car.”
Read the full article in Forbes.